SWX:BKW

Stock Analysis Report

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Executive Summary

BKW AG plans, builds, and operates infrastructure to produce and supply energy for businesses, households, and the public sector in Switzerland, Germany, Italy, France, and internationally.


Snowflake Analysis

Excellent balance sheet and good value.

Share Price & News

How has BKW's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BKW has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.0%

BKW

4.2%

CH Electric Utilities

2.3%

CH Market


1 Year Return

18.2%

BKW

9.1%

CH Electric Utilities

3.2%

CH Market

Return vs Industry: BKW exceeded the Swiss Electric Utilities industry which returned 10.4% over the past year.

Return vs Market: BKW exceeded the Swiss Market which returned 3.6% over the past year.


Shareholder returns

BKWIndustryMarket
7 Day4.0%4.2%2.3%
30 Day2.0%13.1%4.9%
90 Day-5.6%-4.4%2.7%
1 Year21.6%18.2%13.0%9.1%6.6%3.2%
3 Year47.3%35.7%49.3%31.8%21.1%8.7%
5 Year165.9%129.0%53.2%19.7%32.6%10.5%

Price Volatility Vs. Market

How volatile is BKW's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BKW undervalued compared to its fair value and its price relative to the market?

46.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BKW (CHF79.7) is trading below our estimate of fair value (CHF149.41)

Significantly Below Fair Value: BKW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BKW is good value based on its PE Ratio (10.7x) compared to the Electric Utilities industry average (11.7x).

PE vs Market: BKW is good value based on its PE Ratio (10.7x) compared to the Swiss market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: BKW's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BKW is overvalued based on its PB Ratio (1.2x) compared to the XE Electric Utilities industry average (0.8x).


Next Steps

Future Growth

How is BKW forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BKW's earnings are forecast to decline over the next 3 years (-5.5% per year).

Earnings vs Market: BKW's earnings are forecast to decline over the next 3 years (-5.5% per year).

High Growth Earnings: BKW's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BKW's revenue (4.6% per year) is forecast to grow faster than the Swiss market (2.3% per year).

High Growth Revenue: BKW's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BKW's Return on Equity is forecast to be low in 3 years time (8.5%).


Next Steps

Past Performance

How has BKW performed over the past 5 years?

-1.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BKW has a large one-off gain of CHF121.0M impacting its December 31 2019 financial results.

Growing Profit Margin: BKW's current net profit margins (14.1%) are higher than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: BKW's earnings have declined by -1.5% per year over the past 5 years.

Accelerating Growth: BKW's earnings growth over the past year (109.9%) exceeds its 5-year average (-1.5% per year).

Earnings vs Industry: BKW earnings growth over the past year (109.9%) exceeded the Electric Utilities industry 10.4%.


Return on Equity

High ROE: BKW's Return on Equity (10.8%) is considered low.


Next Steps

Financial Health

How is BKW's financial position?


Financial Position Analysis

Short Term Liabilities: BKW's short term assets (CHF2.0B) exceed its short term liabilities (CHF1.3B).

Long Term Liabilities: BKW's short term assets (CHF2.0B) do not cover its long term liabilities (CHF4.2B).


Debt to Equity History and Analysis

Debt Level: BKW's debt to equity ratio (35.1%) is considered satisfactory.

Reducing Debt: BKW's debt to equity ratio has reduced from 63.4% to 35.1% over the past 5 years.

Debt Coverage: BKW's debt is well covered by operating cash flow (35.7%).

Interest Coverage: BKW's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet


Next Steps

Dividend

What is BKW's current dividend yield, its reliability and sustainability?

2.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BKW's dividend (2.76%) is higher than the bottom 25% of dividend payers in the Swiss market (1.94%).

High Dividend: BKW's dividend (2.76%) is low compared to the top 25% of dividend payers in the Swiss market (3.83%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BKW has been paying a dividend for less than 10 years.

Growing Dividend: BKW's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.7%), BKW's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BKW's dividends in 3 years are forecast to be well covered by earnings (38.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Suzanne Thoma (57yo)

7.42yrs

Tenure

CHF1,764,000

Compensation

Dr. Suzanne Thoma, Ph.D., Chemical Engineer ETH, has been the Chief Executive Officer of BKW Energie AG since 2013, Head of Group Management since 2010 and serves as its Member of Executive Board. Dr. Thom ...


CEO Compensation Analysis

Compensation vs Market: Suzanne's total compensation ($USD1.84M) is about average for companies of similar size in the Swiss market ($USD1.85M).

Compensation vs Earnings: Suzanne's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Suzanne Thoma
CEO & Member of the Group Executive Board7.42yrsCHF1.76m0.077% CHF3.2m
Ronald Trächsel
CFO & Member of the Group Executive Board5.83yrsno data0.038% CHF1.6m
Rahel Parnitzki
Head of Business Operationsno datano datano data
Antje Kanngiesser
Head of the Group Markets & Services Division and Member of Executive Board3.42yrsno data0.016% CHF662.5k
Mathias Prüssing
Head of the Building Solutions Division & Member of the Executive Boardno datano datano data
Martin Schweikert
Head of Corporate Communications & Member of the Executive Boardno datano datano data
Roland Küpfer
Head of Power Grid & Member of Group Executive Boardno datano data0.019% CHF792.5k
Werner Sturm
Head of Infra Services Division & Member of the Executive Boardno datano datano data
Michael Schüepp
Head of Engineering Division & Member of the Executive Boardno datano datano data
Philipp Hänggi
Head of Production & Member of Executive Board0.42yrno datano data

4.6yrs

Average Tenure

55yo

Average Age

Experienced Management: BKW's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kurt Schär
Independent Director8.08yrsCHF80.00k0.0034% CHF143.4k
Roger Baillod
Independent Director7.08yrsCHF92.00k0.0087% CHF366.8k
Urs Gasche
Independent Chairman of the Board9.42yrsCHF385.00k0.0089% CHF374.4k
Carole Ackermann
Independent Director2.08yrsCHF80.00k0.0011% CHF48.0k
Hartmut Geldmacher
Independent Vice Chairman2.42yrsCHF143.00k0.010% CHF440.0k
Rebecca Flückiger
Independent Director1.75yrsCHF77.00k0.0011% CHF48.0k
Andreas Rickenbacher
Independent Director2.08yrsCHF97.00k0.00019% CHF8.0k

2.4yrs

Average Tenure

54yo

Average Age

Experienced Board: BKW's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

BKW AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BKW AG
  • Ticker: BKW
  • Exchange: SWX
  • Founded:
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: CHF4.206b
  • Shares outstanding: 52.78m
  • Website: https://www.bkw.ch

Number of Employees


Location

  • BKW AG
  • Viktoriaplatz 2
  • Bern
  • Bern
  • 3013
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BKWSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFDec 2011
B9WDB (Deutsche Boerse AG)YesRegistered SharesDEEURDec 2011
0QQ0LSE (London Stock Exchange)YesRegistered SharesGBCHFDec 2011

Biography

BKW AG plans, builds, and operates infrastructure to produce and supply energy for businesses, households, and the public sector in Switzerland, Germany, Italy, France, and internationally. It operates through three segments: Energy, Grid, and Services. The Energy segment builds, operates, and maintains power plants, such as hydroelectric, nuclear, fossil-fuel, and other renewable energy power plants. It also sells energy, as well as trades in electricity, certificates, and commodities. The Grid segment builds, operates, and maintains distribution grid. The Services segment engages in the provision of planning and engineering consultancy services for energy; infrastructure and environmental projects; and integrated services in the area of building technology; as well as the construction, servicing, and maintenance of energy, telecommunication, transport, and water networks. The company is headquartered in Bern, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 23:13
End of Day Share Price2020/06/05 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.